Apple has offered to open up the iPhone NFC system that Apple Pay uses, in response to an ongoing EU antitrust investigation, according to a report this morning from Reuters.
In lieu of being served with formal EU antitrust charges, Apple’s offer aims to head off the regulator’s concerns.
At this stage, it’s unclear exactly what the Apple proposition comprises.
Banks and alternative payments platforms have complained that the iPhone privileges Apple Pay, with exclusive use of the NFC contactless chip at the system level. This means only Apple Pay and the Wallet app can conveniently perform contactless transactions at retail merchant payment terminals.
Critics argue this policy privileges Apple’s own payment services too much, and that the company is using the dominance of the iPhone to block out competition in mobile payments.
The EU commission will seek consultation with rival mobile payment companies before deciding whether to accept Apple’s mitigations, or continue with the antitrust process. The regulator has the power to fine up to 10% of a company’s revenue if they are found to breach EU competition laws.
Other ongoing EU antitrust cases regarding Apple include a dispute over music streaming, in which Spotify alleges Apple’s 30% commission on in-app purchases unfairly limits competition against Apple Music.
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